Monday, May 12, 2008

Shorter RTH and LEH

Retail Holders (above) are having a wonderful day today and that's what is attracting me to them. Ann Taylor guiding higher, all I can say to that is if you are trading news releases from companies you deserve the fate that befalls you. News conforms to the tape no matter how manic the market feels to you or no matter how much you think news is driving things. I am comfortable fading todays retailer rally, hence;

I am getting short a 3rd unit of RTH here at $95.85

Lehman (above) is a basket case. They are up to their necks in alt-A pay option ARMs. I wish them luck valuing this crap. Oh yeah, their capital position is fine and they have no need to raise money. But don't forget perception is reality and they may have to do this even though they don't need to but just because the market may think they need to so they need to do this to make sure the market doesn't want to be scared they might need to, or something to that effect. Now do you see why I am short Lehman.

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